ARK Invest, led by Cathie Wood, made an interesting move during Tuesday’s crypto downturn. The firm sold 98,060 shares of its own spot Bitcoin ETF (ARKB), worth approximately $8.6 million, while simultaneously buying 41,032 shares of Coinbase (COIN) for around $8.7 million, according to SoSoValue. With Bitcoin plunging below $87,000 and nearly $940 million exiting U.S. spot Bitcoin ETFs, ARK saw an opportunity to double down on Coinbase despite its own price struggles.
Coinbase Faces Pressure but ARK Stays Bullish
Coinbase’s stock took a hit, falling 6.5% to $212.49 on the day, extending its losses to over 20% for the past week. The drop followed BofA Securities slashing its price target from $363 to $311, citing growing competition from traditional financial firms. Investors also reacted to broader economic concerns, as rising tariffs announced by Donald Trump stoked fears of inflation. This has weighed down tech stocks and risk assets like Bitcoin.
ARK Backs Coinbase After Strong Q4 Earnings
Despite market turbulence, ARK appears optimistic about Coinbase, likely due to its strong Q4 earnings, which surged 138% from 2023 and beat analyst expectations. Additionally, the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase. This has removed a major regulatory overhang.
Is Coinbase a Good Stock to Buy?
Analysts are cautiously bullish about COIN stock, with a Moderate Buy consensus rating based on 10 Buys and 12 Holds. Over the past year, COIN has increased by more than 9%, and the average COIN price target of $348.50 implies an upside potential of 64% from current levels.
